(Yicai Global) Dec. 2 -- Shanghai Lujiazui Finance & Trade Zone Development, a real estate developer in Shanghai’s eastern Pudong district, is preparing to raise funds through a new share sale in order to purchase some of the equity that its parent firm, Lujiazui Group, holds in other entities in the financial hub to improve the quality of its assets.

The acquisition will allow Lujiazui Finance & Trade to develop its primary businesses, optimize its financial structure and hike its sustainable development capacity, it said yesterday. The transaction is still pending regulatory approval.

Lujiazui Finance & Trade has suspended trading from today for up to 10 days to allow the major asset reorganization to take place.

Chinese regulators lifted a 12-year ban on new share sales by developers earlier this week to help bolster a flagging real estate market. Those engaged in the property sector can now conduct refinancing on the capital markets through the private placements of new shares, mergers and acquisitions, overseas fundraising and other means.

Shanghai Shimao, Shanghai Greattown Holdings, Xinhu Zhongbao and a number of other developers have already announced fundraising plans through the private placement of new shares.

Editor: Kim Taylor